Rental Adjustments. (A) Operating Expense. Commencing on the Commencement Date and during the Term of this Lease, Tenant shall pay to Landlord the Operating Expense Charges in equal monthly installments of Landlord’s estimate of such Operating Expense Charges, the first of which shall be payable on date hereof. Landlord may reasonably change its estimate of the Operating Expense Charges from time to time (but no more than twice per Operating Year) upon written notice to Tenant, whereupon Tenant shall pay such revised amount as is reasonably determined by Landlord on the later of the next monthly payment coming due or thirty (30) days after written notice of such revised amount is received. Within one hundred twenty (120) days following the end of the first and each succeeding Operating Year, Landlord shall furnish Tenant a statement pertaining to Operating Expenses certified as true and correct by an officer of Landlord and setting forth (i) the actual Operating Expenses (as defined below) for the preceding Operating Year (broken down on a category by category basis), (ii) Tenant’s actual Operating Expense Charges for the previous Operating Year and the amounts paid by Tenant on account thereof, (iii) Tenant’s Operating Expense Adjustment (as defined below), if any, for such Operating Year, and (iv) if elected by Landlord, Landlord’s estimate of the Operating Expense Charges for the then current Operating Year (the “Operating Expense Statement”). If the actual Operating Expense Charges for any Operating Year shall be greater than the payments made by Tenant on account of such Operating Expense Charges, Tenant shall pay to Landlord, as additional rent and within thirty (30) days following the receipt by Tenant of such Operating Expense Statement (the “Expense Adjustment Date”), an amount equal to such difference (the amount of such difference is hereinafter referred to as the “Operating Expense Adjustment”). If Tenant’s payments on account of Operating Expense Charges for an Operating Year exceed the actual Operating Expense Charges for such Operating Year, then Landlord shall pay any such amounts owed to Tenant within thirty (30) days after the Expense Adjustment Date (even if such reconciliation occurs after the end of the Term). If Tenant occupies the Premises or portion thereof for less than a full Operating Year, the Operating Expense Charges will be calculated in proportion to the amount of time in such Operating Year that Tenant occupied the Premises. Notwithstanding anything to the contrary contained in this Article 6, Tenant shall not be responsible for any Operating Expense Charges attributable to any Operating Year which are first billed to Tenant more than two (2) calendar years after the earlier of the expiration of the applicable Operating Year or the date on which the Term expires. As used in this Section 6(A) and Section 1 where applicable, the following words and terms shall be defined as hereinafter set forth:
Appears in 2 contracts
Samples: Sublease Agreement, Sublease Agreement (Verrica Pharmaceuticals Inc.)
Rental Adjustments. (A) Operating Expense. 20.1 Commencing on July 1st, 1999 and on July 1st of each year thereafter, the Base Rent shall be adjusted to reflect any increase in the Consumer Price Index, All Urban [CPI-U] for the Seattle, Washington, Metropolitan area, as prepared by the United States Department of Labor. For such purposes, a comparison of the published index for the period ending most nearly on July 1st of each such year will be made with the index published one year earlier.
20.2 Commencing on July 1, 1999 and for the balance of the Lease Term, Lessee shall pay as additional rent the amount by which the real estate taxes, LID payments and insurance premiums exceed those charges incurred by Lessor during calendar year 1998 ("Base Year") prorated for the Leased Premises by square footage ("Operating Adjustment"). For purposes of this paragraph, the parties agree the Leased Premises represent Fifty Percent (50%) of the total area of the Building.
20.2.1 At least thirty (30) days prior to the Commencement Date of the Second and Subsequent years of the lease term, Lessor shall furnish Lessee a written statement of the estimated operating costs for the coming year, and a calculation of rental adjustment due from the Lessee. That amount shall be equal to one-twelfth (1/12) of the Lessee's proportionate share of the amount, if any, by which the estimated operating costs exceed the Base Rent, which shall be added to the monthly Base Rent payable by Lessee under this Lease for each month during the Term coming year.
20.2.2 Within ninety (90) days after the close of each year of this Lease, Tenant Lessor shall pay deliver to Landlord Lessee a written statement setting forth the actual operating costs during the preceding Operating Expense Charges Year. If the actual Operating Costs for any Operating Year exceed the estimated Operating Costs paid by Lessee to Lessor pursuant to Paragraph 20.2.1 for that Operating Year (or, in equal monthly installments of Landlord’s estimate of such Operating Expense Charges, the first of which shall be payable on date hereof. Landlord may reasonably change its estimate case of the Operating Expense Charges from time to time (but no more than twice per Operating Year) upon written notice to TenantYear in which this Lease commences, whereupon Tenant the Base Amount), Lessee shall pay such revised the amount as is reasonably determined by Landlord on the later of the next monthly payment coming due or excess to Lessor as additional rent within thirty (30) days after Lessee receives the written notice of such revised amount is received. Within one hundred twenty (120) days following the end of the first and each succeeding Operating Year, Landlord shall furnish Tenant a statement pertaining to Operating Expenses certified as true and correct by an officer of Landlord and setting forth (i) the actual Operating Expenses (as defined below) for the preceding Operating Year (broken down on a category by category basis), (ii) Tenant’s actual Operating Expense Charges for the previous Operating Year and the amounts paid by Tenant on account thereof, (iii) Tenant’s Operating Expense Adjustment (as defined below), if any, for such Operating Year, and (iv) if elected by Landlord, Landlord’s estimate of the Operating Expense Charges for the then current Operating Year (the “Operating Expense Statement”)from Lessor. If the statement shows actual Operating Expense Charges for any Operating Year Costs to be less than the amount paid by Lessee to Lessor pursuant to Paragraph 20.2, then the amount of the overpayment shall be greater than the payments made by Tenant on account of such Operating Expense Charges, Tenant shall pay paid Lessor to Landlord, as additional rent and Lessee within thirty (30) days following the receipt by Tenant date of such Operating Expense Statement (the “Expense Adjustment Date”)statement, an amount equal so long as all other obligations of Lessee to such difference (Lessor are current. For purposes of calculating the amount of such difference is hereinafter referred rental adjustment pursuant to as the “Operating Expense Adjustment”). If Tenant’s payments on account of Operating Expense Charges for an Operating Year exceed this paragraph, the actual Operating Expense Charges for such Operating Year, then Landlord shall pay any such amounts owed to Tenant within thirty (30) days after the Expense Adjustment Date (even if such reconciliation occurs after the end of the Term). If Tenant occupies the Premises or portion thereof for less than a full Operating Year, the Operating Expense Charges will be calculated in proportion to the amount of time in such Operating Year that Tenant occupied the Premises. Notwithstanding anything to the contrary contained in this Article 6, Tenant shall not be responsible for any Operating Expense Charges attributable to any Operating Year which are first billed to Tenant more than two (2) calendar years after the earlier of the expiration of the applicable Operating Year or the date on which the Term expires. As used in this Section 6(A) and Section 1 where applicable, the following words and terms Costs shall be defined as hereinafter set forth:deemed never to be below the Base Amount and shall never serve to reduce the Base Rent in Paragraph 3.
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Rental Adjustments. (A) Operating Expense. Commencing on the Commencement Date and during the Term of this Lease, Tenant shall pay to Landlord the Operating Expense Charges in equal monthly installments of Landlord’s estimate of such Operating Expense Charges, the first of which shall be payable on date hereof. Landlord may reasonably change its estimate of the Operating Expense Charges from time to time (but no more than twice per Operating Year) upon written notice to Tenant, whereupon Tenant shall pay such revised amount as is reasonably determined by Landlord on the later of the next monthly payment coming due or thirty (30) days after written notice of such revised amount is received. Within one hundred twenty (120) days following the end of the first and each succeeding Operating Year, Landlord shall furnish Tenant a statement pertaining to Operating Expenses certified as true and correct by an officer of Landlord and setting forth (i) the actual Operating Expenses (as defined below) for the preceding Operating Year (broken down on a category by category basis), (ii) Tenant’s actual Operating Expense Charges for the previous Operating Year and the amounts paid by Tenant on account thereof, (iii) Tenant’s Operating Expense Adjustment (as defined below), if any, for such Operating Year, and (iv) if elected by Landlord, Landlord’s estimate of the Operating Expense Charges for the then current Operating Year (the “Operating Expense Statement”). If the actual Operating Expense Charges for any Operating Year shall be greater than the payments made by Tenant on account of such Operating Expense Charges, Tenant shall pay to Landlord, as additional rent and within thirty (30) days following the receipt by Tenant of such Operating Expense Statement (the “Expense Adjustment Date”), an amount equal to such difference (the amount of such difference is hereinafter referred to as the “Operating Expense Adjustment”). If Tenant’s payments on account of Operating Expense Charges for an Operating Year exceed the actual Operating Expense Charges for such Operating Year, then Landlord shall pay any such amounts owed to Tenant within thirty (30) days after notification by Landlord, as additional rent for the Expense Adjustment Date lease year, a proportionate share of any assessment greater than the assessment for the 12-month period immediately prior to the date of such assessment, including, but not limited to, any assessment or installment thereof for public betterments and/or improvements which may be levied upon the said land and building; and/or real estate taxes payable with respect to the building and the land on which it is located and adjacent parking areas, whether by reason of an increase in either the tax rate or the assessed valuation or by reason of the levy, assessment, or imposition of any tax on real estate as such not now levied, assessed, or imposed, or for any other reason. Landlord shall take the benefit of the provisions of any statute or ordinance permitting any such assessment to be paid over a period of time, and Tenant shall be obligated to pay only the said percentage of the installments and applicable interest on any such assessments which shall become due and payable during the term of this lease. Said proportionate share shall be determined by multiplying the total increases by a fraction, the numerator of which is the total square footage leased to Tenant, including a proportionate share of any common areas, and the denominator of which is the total square footage of the building in which the leased premises are located. In the event that Xxxxxxxx’s averaged monthly operating expenses incurred with respect to the building and parking areas, of which the demised premises form a part, are greater than the averaged monthly operating expenses incurred by the Landlord with respect to said building and parking areas in the 12-month period immediately prior to the commencement date of this lease, then Tenant shall pay a proportionate share of such established increases in operating expenses. Should the increase in the operating expenses be immediately determinable, as in the case of increases in utility rates, insurance, of janitorial costs, then Tenant’s proportionate amount of that increase shall be computed by Landlord and shall be payable by Tenant to Landlord, within thirty (even if 30) days after notification of Landlord, as additional rent for the lease year or any portion thereof in which the same shall apply. In the event that such reconciliation occurs Increase in operating expenses cannot be determined on a monthly basis, but only after the building has been operated for a year and comparative figures made available, then in such event Landlord shall determine the amount of the increase in operating expenses on either a calendar year basis or a lease year basis, and Tenant shall make payment to Landlord as additional rent the proportionate share d such increase, with payment to be made within thirty (30) days after notification of Landlord. For the purpose d the above paragraph, “operating expenses” shall include, but not be limited to, the following expenses incurred by the Landlord with respect to the building and parking areas of which the demised premises form a part: janitorial, management, electricity, gas, utility taxes, water, sewer, garbage, casualty and liability insurance, window cleaning, expenses for general repair work including wages, payroll taxes, workmen’s compensation, and all other expenses paid in connection with the operation of said building. Landlord, within ten (10) days after written request by Xxxxxx, but not sooner than thirty (30) days after Landlord has given notice of the increase in operating expenses, shall have available at the office of Landlord a summary schedule of such operating expenses indicating the amount of Increases involved in the expenses. The above “operating expenses” apply only in cases where the above-described fees are paid by Landlord. If a lease is written for any period of time greater than one (1) year, it is understood that at the end of the Term)initial 12-month period and the conclusion of any additional 12-month periods there will be an automatic rental Increase at least equal to the increase in the Consumer Price Index over the preceding twelve (12) months. If Tenant occupies It is understood that if all increases in the Premises or portion thereof for less than a full Operating Yearcosts of operation have not already been passed on to the Tenant, the Operating Expense Charges will be calculated in proportion to annual increase may exceed the Consumer Price Index by the amount of time in such Operating Year that Tenant occupied the Premises. Notwithstanding anything to the contrary contained in this Article 6, Tenant shall not be responsible for any Operating Expense Charges attributable to any Operating Year which are first billed to Tenant more than two (2) calendar years after the earlier of the expiration of the applicable Operating Year or the date on which the Term expires. As used in this Section 6(A) and Section 1 where applicable, the following words and terms shall be defined as hereinafter set forth:said Increases.
Appears in 1 contract
Samples: Lease Extension (Alphasmart Inc)
Rental Adjustments. The Lessee's "pro rata" share shall be deemed to be equal to eighteen point twenty one percent (A18.21%) Operating Expenseof the total rentable area of the Structure. Commencing It is understood and agreed that the rental amount shown in Section 1.03 (a) is based on the Commencement Date estimated cost of the building and during inclusive of an estimated cost for utilities, taxes, insurance and janitorial services.
(a) Since the Term of this Lease, Tenant shall pay to Landlord the Operating Expense Charges monthly rental amount in equal monthly installments of Landlord’s Section 1.03 (a) includes an estimate of cost for utilities (electricity, gas, water, garbage and sewer), taxes, insurance, general janitorial services 3 times per week, window cleaning 4 times per year and trash disposal. Lessor will reconcile the actual expenses for such Operating Expense Chargesservices with the estimated expenses included in the monthly rental amount on an annual basis and refund to Lessee it “pro rata” share of any excess amounts (actual expenses less than estimated expenses).
1. In the first year, defined as the base year, the first of which shall be payable on date hereof. Landlord may reasonably change its estimate of the Operating Expense Charges from time to time (but no more than twice per Operating Year) upon written notice to Tenantestimated expenses, whereupon Tenant shall pay such revised amount as is reasonably determined by Landlord on the later of the next monthly payment coming due or thirty (30) days after written notice of such revised amount is received. Within one hundred twenty (120) days following the end of stated above, for the first and each succeeding Operating Year, Landlord shall furnish Tenant a statement pertaining to Operating Expenses certified as true and correct by an officer of Landlord and setting forth (i) year will be the base year expenses. This base year actual Operating Expenses (as defined below) expense will be substituted in the first year rental rate for the preceding Operating Year (broken down on a category by category basis)estimated expenses. Each year thereafter, (ii) Tenant’s actual Operating Expense Charges for the expenses will be compared to the previous Operating Year and the amounts paid by Tenant on account thereof, (iii) Tenantyear’s Operating Expense Adjustment (as defined below), if any, for such Operating Year, and (iv) if elected by Landlord, Landlord’s estimate of the Operating Expense Charges for the then current Operating Year (the “Operating Expense Statement”)expenses to determine any over or under collections. If the actual Operating Expense Charges for any Operating Year shall be greater than the payments made by Tenant on account of such Operating Expense Charges, Tenant shall Lessee agrees to pay to Landlord, as additional rent and within thirty (30) days following the receipt by Tenant its “pro rata” share of such Operating Expense Statement (the “Expense Adjustment Date”), an amount equal to such difference (the amount of such difference is hereinafter referred to as the “Operating Expense Adjustment”). If Tenant’s payments on account of Operating Expense Charges for an Operating Year exceed the actual Operating Expense Charges for such Operating Year, then Landlord shall pay any such expense in excess of the estimated expenses included in the monthly rental amount. Any additional amounts owed by Lessee will be due to Tenant Lessor within thirty (30) 30 days after the Expense Adjustment Date (even if such reconciliation occurs after the end presentation of the Term)reconciliation by Lessor to Lessee.
(b) Lessee shall be solely and exclusively responsible for payment of all taxes assessed against any property owned or used by or for the Lessee within, upon or about the demised premises or installed by Lessee within or upon the demised premises or arising out of the conduct and operation of Lessee’s business upon or about the demised premises.
(c) Lessor will maintain the building in good functioning condition. If Tenant occupies the Premises or portion thereof Lessee will maintain all consumable items, i.e. light bulbs and HVAC filters, and maintenance work caused by use, such as clogged drains and paint touch up.
(d) No cost for less than a full Operating Year, the Operating Expense Charges parking will be calculated in proportion assessed during the lease or any subsequent leases. Lessor has provided for four (4) parking spaces per 1,000 square feet of leased space.
(e) Lessor shall have the right to the amount of time in such Operating Year that Tenant occupied the Premises. Notwithstanding anything to the contrary contained in this Article 6, Tenant shall not be responsible assess Lessee its “pro rata” share for any Operating Expense Charges attributable to any Operating Year which are first billed to Tenant more than two (2) calendar years after the earlier major maintenance of and for repaving of the expiration of parking area. Any amount over $5,000 due by the applicable Operating Year or Lessee needs prior approval by the date on which the Term expires. As used in this Section 6(A) and Section 1 where applicable, the following words and terms shall be defined as hereinafter set forth:Lessee.
Appears in 1 contract
Rental Adjustments. If the reviewed Specified Rent payable from a Review Date is not agreed or determined in accordance with the provisions of this Schedule 5 (Rent Review ) before the Relevant Review Date, then until the reviewed Specified Rent has been so agreed or determined, the Leaseholder will continue to pay on account Specified Rent at the rate payable immediately before the Relevant Review Date. Within 14 days after the time that the reviewed Specified Rent has been agreed or determined the Leaseholder will pay to the Landlord all arrears of the reviewed Specified Rent which have accrued in the meantime[, with interest equal to the base rate of Barclays Bank PLC on each of the instalments of the arrears from the time that it would have become due if the reviewed rent had then been agreed or determined until payment becomes due from the Leaseholder to the Landlord under this paragraph 6(b)]. Notice of Review Immediately following each Review Date the Landlord shall serve written notice on the Leaseholder, substantially in the form set out in Appendix 2 specifying the amount of the reviewed Gross Rent and the amount of the Specified Rent then payable. Staircasing Provisions Restart Numbering Applied At any time or times during the Term the Leaseholder may serve notice in writing on the Landlord stating the Portioned Percentage he proposes to acquire. The provisions of this Schedule 6 (Staircasing Provisions ) shall also be exercisable by any mortgagee of the Leaseholder of whom the Landlord has received proper notice pursuant to Clause 10.21 (Register disposals ). The Landlord shall apply to the Valuer to determine the Market Value as at the date of service of the Leaseholder’s notice served pursuant to paragraph 1(a) (upon which the price of acquisition will be based) within 14 days of receipt of the Leaseholder’s notice (or, if later, within 14 days of the Valuer’s appointment) and shall notify the Leaseholder of the amount of the Valuer’s determination in writing within 7 days of receipt of the said determination. At any time within 3 months of the Valuer’s determination the Leaseholder may pay for a Portioned Percentage in accordance with the provisions of paragraph 1(d). The Leaseholder may pay for a Portioned Percentage by paying to the Landlord a sum equal to that Portioned Percentage of Market Value (as agreed or determined under this Schedule 6 (Staircasing Provisions )) plus any unpaid sums under paragraph 1(e) and as from the date of such payment (a) the Portioned Percentage so acquired shall form part of the Acquired Percentage and (b) the Specified Rent payable under this Lease shall be a sum equal to the Unacquired Percentage of the Gross Rent. On completion of the payment for a Portioned Percentage in addition to the sum or the price payable for the Portioned Percentage the Leaseholder shall pay any arrears of rent and any other sums due to the Landlord under this Lease including any unpaid costs under paragraph 1(l)(v). The Landlord and the Leaseholder shall, save as provided in paragraph 1(l)(v) pay their own costs and expenses in connection with such payment or purchase. Whenever the Leaseholder completes the payment for a Portioned Percentage the Landlord and the Leaseholder shall forthwith execute and deliver to the other (to be attached to the original and counterpart of this Lease) a memorandum substantially in the form set out in Appendix 1 specifying the Portioned Percentage paid for and the Specified Rent then payable. If the provisions of this Schedule 6 (Staircasing Provisions ) are exercised by any mortgagee under paragraph 1(a) then provided that the Premises are being sold by the mortgagee on an arm's length basis at the best price reasonably obtainable at the time of sale: the Market Value shall be deemed to be the price at which the Premises are being sold by the mortgagee on the assumption that the Unacquired Percentage is nil; the relevant Portioned Percentage shall be calculated on the basis of that deemed Market Value; and if so requested by the mortgagee, the Landlord shall co-operate with the mortgagee to ensure that there occurs simultaneously (A) Operating Expensethe payment to the Landlord of the relevant Portioned Percentage under paragraph 1(d), (B) delivery by the Landlord to the mortgagee of the memorandum under paragraph 1(f), and (C) completion of the sale of the Premises by the mortgagee. Commencing Where the Leaseholder serves a notice under paragraph 1(a) the Landlord must not act in a way that would unreasonably delay the acquisition by the Leaseholder of the Portioned Percentage he proposes to acquire. Upon payment of the sum referred to in paragraph 1(d) in circumstances where the Acquired Percentage has become 100%: The definition of "Acquired Percentage" shall be amended to mean a 100% percentage interest in the Premises; the Specified Rent shall be reduced to the Minimum Rent; and the following provisions of this Lease shall no longer have effect: Definition of "Default", "Enforcement Date", "Final Staircasing", "Loss", "Mortgage Protection Claim", "Payment Sum", “Portioned Percentage”, “Unacquired Percentage”, "Valuer" and “Valuer's Certificate”; Clause 8 (Mortgage protection ); Schedule 5 (Rent Review); and this Schedule 6 (Staircasing Provisions ) (except this paragraph 2). The costs of any determination by the Valuer pursuant to the provisions of this Schedule 6 (Staircasing Provisions ) shall be paid by the Leaseholder to the Landlord on demand. The parties agree that the decision of the Valuer shall be final and binding on the Commencement Date parties to this Lease. Surrender by Leaseholder Restart Numbering Applied If the Landlord serves notice on the Leaseholder pursuant to Clause 3.19.4(c) completion of the surrender to the Landlord shall take place and during vacant possession shall be given on a date agreed between the Term Landlord and the Leaseholder but failing agreement on the date four weeks from the date the Payment Sum is determined. The Landlord shall be entitled to deduct from the Payment Sum such sums as may be due and owing at the date of surrender in respect of arrears of rents and other sums due under this Lease. If before the date of surrender of this Lease the Landlord has received notice pursuant to Clause 10.21 (Register disposals ) of a mortgage or charge of this Lease, Tenant : the Landlord shall (and the Leaseholder irrevocably requests and directs the Landlord to do so) pay the Payment Sum less the deductions referred to in paragraph (or (if less) such sufficient part thereof as is necessary to discharge the said mortgage or charge) to the mortgagee or chargee named in the said notice upon trust for the Leaseholder; the receipt of the said mortgagee or chargee shall absolutely discharge the Landlord from its obligations under this Schedule 7 (Surrender by Leaseholder ); the Operating Expense Charges in equal monthly installments Landlord and the Leaseholder agree that completion of Landlord’s estimate the surrender cannot take place until the Payment Sum (or such part as is sufficient to discharge the said mortgage or legal charge) is paid to the mortgagee or chargee to the intent that the security afforded to the mortgagee or chargee by this Lease shall not lapse until the Payment Sum or a sufficient part of it as is necessary to discharge the said mortgage or charge is paid to the mortgagee; and if at the time of such Operating Expense Charges, the first of which shall be payable on date hereof. Landlord may reasonably change its estimate of the Operating Expense Charges from time to time surrender under this Schedule 7 (but no more than twice per Operating YearSurrender by Leaseholder ) upon written notice to Tenant, whereupon Tenant shall pay such revised amount as is reasonably determined by Landlord on the later of the next monthly payment coming due or thirty (30) days after written notice of such revised amount is received. Within one hundred twenty (120) days following the end of the first and each succeeding Operating Year, Landlord shall furnish Tenant a statement pertaining to Operating Expenses certified as true and correct by an officer of Landlord and setting forth (i) there is any Loan outstanding to a Mortgagee of the actual Operating Expenses (as defined below) for the preceding Operating Year (broken down on a category by category basis), Premises and (ii) Tenant’s actual Operating Expense Charges for the previous Operating Year and Acquired Percentage is less than the amounts paid by Tenant on account thereof, (iii) Tenant’s Operating Expense Adjustment (as defined below), if any, Maximum Percentage then the consideration for such Operating Year, and surrender shall be the Payment Sum plus the Mortgage Protection Claim (ivcalculated on the basis that paragraph (h) if elected by Landlord, Landlord’s estimate in the definition of “Loss” is the Operating Expense Charges for the then current Operating Year Payment Sum in Schedule 9 (the “Operating Expense Statement”Defined Terms )). If Save as otherwise provided any costs incurred by either party pursuant to the actual Operating Expense Charges for any Operating Year provisions of this Schedule 7 (Surrender by Leaseholder ) shall be greater than the payments made borne by Tenant on account of such Operating Expense Charges, Tenant shall pay to Landlord, as additional rent and within thirty (30) days following the receipt by Tenant of such Operating Expense Statement (the “Expense Adjustment Date”), an amount equal to such difference (the amount of such difference is hereinafter referred to as the “Operating Expense Adjustment”)that party. If Tenant’s payments on account of Operating Expense Charges for an Operating Year exceed the actual Operating Expense Charges for such Operating Year, then Landlord shall pay any such amounts owed to Tenant within thirty (30) days after the Expense Adjustment Date (even if such reconciliation occurs after the end of the Term). If Tenant occupies the Premises or portion thereof for less than a full Operating Year, the Operating Expense Charges will be calculated in proportion to the amount of time in such Operating Year that Tenant occupied the Premises. Notwithstanding anything to the contrary contained in this Article 6, Tenant shall not be responsible for any Operating Expense Charges attributable to any Operating Year which are first billed to Tenant more than two (2) calendar years after the earlier of the expiration of the applicable Operating Year or the date on which the Term expires. As used in this Section 6(A) and Section 1 where applicable, the following words and terms shall be defined as hereinafter set forth:Mandatory Buyback4
Appears in 1 contract
Samples: Shared Ownership Lease
Rental Adjustments. If Landlord's Real Estate Taxes (Aas herein defined) Operating Expense. Commencing on shall increase in any one Lease Year over the Commencement Date and during amount of Landlord's Real Estate Taxes for the Term of this Leaseimmediately preceding Lease Year, Tenant shall pay as Additional Rent its Proportionate Share of any such increase in Real Estate Taxes. Real Estate Taxes shall mean real property taxes and other taxes or surcharges levied in lieu of such taxes, general and special public assessments, taxes or surcharges imposed by any governmental authority pursuant to Landlord anti-pollution or environmental legislation other than charges or penalties imposed on Landlord, prior owners or other tenants at the Operating Expense Charges in equal monthly installments Building for which Tenant is not responsible, taxes on the rentals of the Building or the use, occupancy or renting of space therein. Real Estate Taxes shall not be included within the definition of Landlord’s estimate 's Operating Expense. Tenant's Proportionate Share of such the increase in Real Estate Taxes payable in any one year shall not be affected by the "collar" on Operating Expense Charges, Expenses more particularly described below. Such Proportionate Share of the first of which increase in Real Estate Taxes shall be payable on date hereof. Landlord may reasonably change its estimate of paid in the Operating Expense Charges from time to time (but no more than twice per Operating Year) upon written notice to Tenant, whereupon Tenant shall pay such revised amount as is reasonably determined by Landlord on the later of the next monthly payment coming due or thirty (30) days after written notice of such revised amount is received. Within following manner: within one hundred twenty (120) days following the end of the first and each succeeding Operating Year, Landlord shall furnish Tenant a statement pertaining to Operating Expenses certified as true and correct by an officer of Landlord and setting forth (i) the actual Operating Expenses (as defined below) Real Estate Taxes for the preceding Operating Year (broken down on a category by category basis), and (ii) Tenant’s actual Operating Expense Charges for 's Proportionate Share of the previous Operating Year and the amounts paid by Tenant on account thereof, (iii) Tenant’s Operating Expense Adjustment (as defined below), if any, increase in Real Estate Taxes for such Operating Year. Within fifteen (15) days following the receipt of such statement, and (iv) if elected by Landlord, Landlord’s estimate Tenant shall pay to Landlord as Additional Rent Tenant's Proportionate Share of the increase in Real Estate Taxes for such Operating Year. If Landlord's Operating Expense Charges for the then current Operating Year (the “Operating Expense Statement”). If the actual Operating Expense Charges for any Operating Year shall be greater than the payments made by Tenant on account of such Operating Expense ChargesStop, Tenant shall pay to Landlord, Landlord as additional rent and within thirty (30) days following the receipt by Tenant of such Operating Expense Statement (the “Expense Adjustment Date”), Additional Rent an amount equal to such the product obtained by multiplying the difference by Tenant's Proportionate Share (the amount of such difference is hereinafter referred to as the “"Operating Expense Adjustment”). If Tenant’s payments on account of Operating Expense Charges for an Operating Year exceed the actual Operating Expense Charges for such Operating Year, then Landlord shall pay any such amounts owed to Tenant within thirty (30) days after the Expense Adjustment Date (even if such reconciliation occurs after the end of the TermExcess"). If Tenant occupies the Premises or a portion thereof for less than a full Operating Year, the Operating Expense Charges Excess will be calculated in proportion to the amount of time in such Operating Year that Tenant occupied the Premises. Notwithstanding anything the foregoing, the Operating Expense Excess shall be calculated each Lease Year commencing after calendar year 1998 assuming that the minimum Operating Expense for any such year is 103% of the Operating Expense for the immediately preceding calendar year (regardless of the actual amount of the Operating Expense for such calendar year) and that the maximum Operating Expense for any such year is 107% of the Operating Expense for the immediately preceding calendar year (regardless of the actual amount of the Operating Expense for such year). The foregoing minimum and maximum annual adjustment of Operating Expense is referred to herein as the contrary contained "collar". Such Operating Expense Excess shall be paid in this Article 6the following manner: within one hundred twenty (120) days following the end of the first and each succeeding Operating Year, Landlord shall furnish Tenant an Operating Expense Statement setting forth (i) the Operating Expense for the preceding Operating Year and (ii) Tenant's Proportionate Share of the Operating Expense Excess for such Operating Year. Within fifteen (15) days following the receipt of such Operating Expense Statement (the "Expense Excess Date"), Tenant shall not be responsible for any pay to Landlord as Additional Rent the Tenant's Proportionate Share of the Operating Expense Charges attributable to any Excess for such Operating Year which are first billed to Tenant more than two (2) calendar years after the earlier of the expiration of the applicable Operating Year or the date on which the Term expiresYear. As used in this Section 6(A) 6 and Section 1 where applicable, the following words and terms shall be defined as hereinafter set forth:
Appears in 1 contract
